Cardano’s Wallet Exodus Preceded Price Rally
Santiment, an on-chain analytics firm, has identified a pattern in Cardano that may have contributed to its recent 65% price rally. According to Santiment, a significant number of small wallets cleared out last month, as indicated by the “Supply Distribution” metric. This metric categorizes wallets based on their token holdings. The analysis focused on two groups: 10 to 100 coins and 0 to infinity. The chart provided shows the trend in the indicator for these two groups over the past few months. Santiment suggests that this exodus of retail investors may have triggered fear-induced selling, allowing big money investors to scoop up more ADA.
ADA Price Correction
After a period of sustained bullish momentum, Cardano’s price rally has slowed down recently. Since reaching a local top at $0.648, ADA has experienced an 11% pullback and is now hovering around $0.577.
Hot Take: Retail Investors’ Fear Triggered ADA Rally
The recent surge in Cardano’s price may have been influenced by a pattern observed by Santiment. The exodus of small wallets and subsequent fear-induced selling by retail investors allowed larger investors to accumulate more ADA. This behavior aligns with the notion that drops in wallet addresses often indicate capitulation and potential turning points for prices. While Cardano’s rally has slowed down in recent days, it is clear that market dynamics played a role in its upward movement.
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